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Is it illegal to artificially break the oil commodities market?
One of the main reasons the price of gas at the pump is so high is because of futures trading on the commodities market. If enough people banded together with a few dollars a piece that they were willing to lose on the commodities market, they could have a real effect on the price of gas. Would such action be legal?
3 Answers
- jimbobbighouseLv 41 decade agoFavorite Answer
Market manipulation is illegal. I guess your scenario might be a first where people were attempting to manipulate the market in a way that would not favor them.
The scenario isn't possible though...
1.) to affect the commodity market you'd need millions or billions to have an effect
2.) You'd have to SELL oil at a below market price to bring the price down -- and potentially effect the price of gas. You wouldn't be able to put enough pressure on the market though - if oil is at $115, there are too many buyers at $114, $113, etc. When you sell, you HAVE to take the highest bid, so you couldn't sell it to someone for, let's say $50 if there are bids above that.
- yahooblowwzLv 61 decade ago
Break? Not sure what you mean by that, but I think you mean lower the price. True, right now hedge fund managers and other speculators are driving the price of crude artifically high, probably by 50-80 cents per gallon of gasoline. This is true on many commodities right now, and I don't think even the gov't has enough money to "break" it!
- ?Lv 44 years ago
Micheal Moore isn't smart adequate to take a position in a futures industry. the guy rather graduated extreme college and has no college, no longer the variety that usually may be triumphant interior the commodity markets.